Fed revives European stock rally; EDF tumbles

jueves 19 de junio de 2014 08:02 GYT

* FTSEurofirst 300 up 0.7 pct, Euro STOXX 50 up 1.1 pct

* EDF's plunge takes 5.8 bln euros off its market value

* Peugeot's short-covering rally continues

By Blaise Robinson

PARIS, June 19 (Reuters) - European stocks rallied on Thursday, with a blue-chip index near a six-year high, after the U.S. Federal Reserve signalled that over the long run interest rates would be lower than it had previously indicated.

Bucking the trend, shares in French utility EDF sank 12 percent after Energy Minister Segolene Royal said a five percent tariff increase scheduled for Aug. 1 would not be applied.

The drop - EDF's sharpest one-day slide since its market listing in 2005 - wiped out 5.8 billion euros ($7.9 billion) in market value - nearly the price of the latest-generation nuclear reactor EDF is building in Flamanville, France.

"It comes as a surprise for the market. We thought that the tariff hike was a done deal," a Paris-based trader said.

At 1120 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,397.10 points. The euro zone's blue-chip Euro STOXX 50 index had risen 1.1 percent to 3,316.36 points, a level not seen since mid-2008.   Continuación...